PG&E 2008 Annual Report Download - page 50

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48
The following table summarizes the Utility’s long-term
debt issuances in 2008:
(in millions) Issue Date Amount
Senior notes
5.625%, due 2017 March 3 $ 200
6.35%, due 2038 March 3 400
8.25%, due 2018 October 21 600
6.25%, due 2013 November 18 400
8.25%, due 2018 November 18 200
Total senior notes 1,800
Pollution control bonds
Series 2008 F, 3.75%, due 2026 September 22 50
Series 2008 G, 3.75%, due 2018 September 22 45
Series 2008 A and B, variable rates,
due 2026 October 29 149
Series 2008 C and D, variable rates,
due 2016 October 29 160
Total pollution control bonds 404
Total long-term debt issuances
in
2008 $2,204
PG&E Corporation’s and the Utility’s revolving credit
facilities include usual and customary covenants for credit
facilities of their type, including covenants limiting liens
to those permitted under the senior notes’ indenture,
mergers, sales of all or substantially all of the Utility’s assets,
and other fundamental changes. In addition, both PG&E
Corporation and the Utility are required to maintain a
ratio of total consolidated debt to total consolidated capital-
ization of at most 65%, and PG&E Corporation must own,
directly or indirectly, at least 80% of the common stock
and at least 70% of the voting securities of the Utility. At
December 31, 2008, PG&E Corporation and the Utility met
all of these requirements.
2008 Financings
Access to the capital markets is essential to the continuation
of the Utility’s capital expenditure program. Notwithstand-
ing the recent disruption in the capital markets, the Utility
was able to issue $1.2 billion of senior unsecured notes in
October and November 2008. The proceeds were used pri-
marily to fi nance capital expenditures and to partially repay
outstanding commercial paper balances in preparation for
refi nancing $600 million of long-term debt that will mature
in March 2009. In addition, the Utility used the proceeds
it received from the September and October 2008 refund-
ing of certain pollution control bonds to repay outstanding
commercial paper.
The Utility has a $1.75 billion commercial paper program, the borrowings from which are used primarily to cover fl uctua-
tions in cash fl ow requirements. Liquidity support for these borrowings is provided by available capacity under the revolving
credit facility. At December 31, 2008, the average yield was approximately 2.48%.
The following table summarizes PG&E Corporation’s and the Utility’s short-term borrowings and outstanding credit
facilities at December 31, 2008:
(in millions) At December 31, 2008
Letters Commercial
Termination Facility of Credit Cash Paper
Authorized Borrower Facility Date Limit Outstanding Borrowings Backup Availability
PG&E Corporation Revolving credit facility February 2012 $ 200(1) $ — — $ — $ 200
Utility Revolving credit facility February 2012 2,000(2) 287 — 287 1,426
Total credit facilities $2,200 $287 — $287 $1,626
(1) Includes a $50 million sublimit for letters of credit and $100 million sublimit for “swingline” loans, defi ned as loans that are made available on
a same-day basis and are repayable in full within 30 days.
(2) Includes a $950 million sublimit for letters of credit and $100 million sublimit for swingline loans.